4 mistakes on investing in stocks

Four biggest mistakes on stock investing:


Mistake #1 - Invest When You're Old:
Stocks are mostly for young people who can take risk and in effect can afford the effects of the risk. Your portfolio and the asset allocation has be based on the age. Subtract your age by 120 and that is the percentage for which anybody should invest in stocks. For example, if your age is 30, 120-30 = 80%. 80% of your money can be invested in stocks. At times, the 120 can be considered as 100, depending upon your risk taking ability.

Mistake #2 - Not Understanding The Company:
Completely understand the company's history. Before investing in a particular company, know what you are doing and where you are investing.

Mistake #3 - Gambling On Stocks:
Do not trade on a daily basis. Wait for long-term, while you invest in stocks. Do not gamble on your money, but be responsible.

Mistake #4 - Putting All Your Eggs In One Basket:
Do not invest all of your money in a single place. Have all your money in a diversified location.